If all prices adjusted immediately to balance the quantities supplied and demanded for all goods and services:
A. output gaps would be positive more often than they would be negative.
B. potential GDP would rise much more quickly.
C. cyclical unemployment would be positive.
D. output gaps would not exist.
Answer: D
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Which of the following is true in the long run?
A) Total cost equals fixed cost. B) Total cost is constant. C) All costs are variable. D) Marginal cost equals zero. E) None of the above is true in the long run.
Export embargoes cause greater losses to consumer surplus in the target country
A) the lesser its initial dependence on foreign produced goods. B) the more elastic is the target country's demand schedule. C) the more elastic is the target country's domestic supply. D) the more inelastic the target country's supply. E) the larger the target country's labor force is.
What happened that was unusual during the 1980s?
a. Debt soared due to a war. b. Debt soared during a time of peace. c. Debt plummeted due to a recession. d. Debt plummeted due to tax increases.
An increase in demand occurs when
A. quantity demanded is greater than quantity supplied. B. quantity supplied is greater that quantity demanded. C. the demand curve shifts upward and to the right. D. there is a leftward shift in the demand curve.